INDUSTRIAL ATTACHMENT REPORT

A CASE OF KENYA MEDICAL AND SUPPLIES AUTHORITY

(KEMSA)

BY

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

A REPORT SUBMITTED IN PARTIAL FULFILMENT OF THE

DECLARATION

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 This research report is my own original work and has not been presented to any other
examination body. No part of this report should be reproduced without my consent or that of
XXXXXXXXXXXXXXXXXX

Name…………………………………………

Sign…………………………………………..

Date……………………………………….....

Declaration by the supervisor

This research has been submitted with my approval of XXXXXXXXX

Name………………………………………………

Sign…………………………………………………

Date………………………………………………….

DEDICATION

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I wish to dedicate the work to XXXXXXXXXXXXXXXXXXXX.

ACKNOWLEDGEMENT

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The successful accomplishment of this work has been possible due to guidance and support from
a number of people. In any way it is not possible to mention them all in these small sheet of
paper. However I would like to take the opportunity to thank the Almighty God for the peace of
mind and good health He gave me throughout the period of my attachment, my family for the
support they gave. I also salute XXXXXXXXXXXXXXXXXXXX

PREFACE

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The purpose of this report is to explain what I did and learned during my internship period at the
Kenya Medical Supplies Authority under the procurement department, distribution department
and warehouse inventory management.

The report focuses primarily on the assignments handled, skills gained, analysis, observation,
critique, summary and conclusion of the report.

It is hoped that this report would serve as a stepping stone towards the improvement of internship
programs and to serve as a testimonial of practical’s done to those who would want to go for
attachment.

TABLE OF CONTENTS

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DECLARATION…………………………………………………………………………………………………………………………………….…2

DEDICATION………………………………………………………………………………………………………………………………………….3

ACKNOWLADGEMENT……………………………………………………………………………………………………………………….….4

PREFACE………………………………………………………………………………………………………………………………………………….5

TABLE OF CONTENTS……………………………………………………………………………………………………………………………….6

LIST OF ABREVIATION……………………………………………………………………………………………………………………………8

LIST OF FIGURES…………………………………………………………………………………………………………………………………….9

LIST OF TABLES ……………………………………………………………………………………………………………………………………10

CHAPTER ONE

1.1 INTRODUCTION…………………………………………………….……………………………………………………………………….11

1.2 KEMSA PROFILE……………………………………………………..………………………………………………………………………11

1.3 CORE ACTIVITIES……………………………………………………………………………………………………………………………12

1.3.1 Procurement………………………………………………………………………………………………………………………………12

1.3.2 Distribution…………………………………………………………………………………………………………………………………12

1.3.3 Warehousing……………………………………………………………………………………………….……………………..………12

1.4 MISSION, VISION AND GOALS…………………………………………………………………………………………….………….13

1.4.1 Vision……………………………………………………………………………………………………………………………………..…13

1.4.2 Mission…………………………………………………………………………………………………………………………………….…13

1.4.3 Departmental Goal.........................................................................................................................12

2.6 SKILLS AND COMPETENCIES GAINED.......................................................................................20
2.7 SKILLS APPLIED FOR BENEFIT OF ORGANIZATION................................................................21
2.8 UTILIZATION OF CONTACTS MADE DURING THIS ATTACHMENT................................24
Analysis/observations/critiques.................................................................................................................24
3.1 SWOT ANALYSIS.............................................................................................................................24
CHAPTER FOUR.....................................................................................................................................28
4.1 SUMMARY........................................................................................................................................28
4.2 CONCLUSION...................................................................................................................................30
REFERENCES..........................................................................................................................................31

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 LIST OF ABBREVIATIONS

KEMSA- Kenya Medical and Supplies Authority

WHO-World Health Organization
WB- World Bank
USAID-United States Agency for International Development
GF-Global Fund
UN- United Nations
WMS- Warehouse Management System
ERP- Enterprise Resource Planning
LPO- Local Purchase Order

RFQ-Request for Quotation

GOK-Government of Kenya

NP- National Program

BTR- Batch Transaction Record

DSS-Daily Summery Sheet

MOH-Ministry of Health

PPADA- Public Procurement and Assets Disposal Act

SOPs- Standard Operating Procedures

CEO- Chief Executive Officer

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 LIST OF FIGURES

Figure 1.1……………………………………………………..pg. 10

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 LIST OF TABLE

Table 1.1………………………………………………….pg. 12
Table 3.1…………………………………………………..pg. 25

CHAPTER 1

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1.1 INTRODUCTION

This chapter briefly explains about KEMSA, the support department of its core activities that is
procurement, distribution and warehousing. It also states the vision and mission of the
organization and also its organizational structure. Briefly this chapter explains about KEMSA.

1.2 KEMSAPROFILE
Figure1.1

KEMSA is a medical logistics provider with its headquarters based in Nairobi in industrial area
on Commercial Street. The Kenya Medical Supplies Authority (KEMSA) is an autonomous state
corporation under the Ministry of Medical Services with the mandate to procure, warehouse and
distribute medical commodities to public health facilities in Kenya. KEMSA has been
autonomous since February 2000. Notwithstanding this, KEMSA also supplies medical supplies
to other health facilities including faith based and mission hospitals and facilities. KEMSA is
thus the largest purchaser of drugs and medical supplies in the Country.

KEMSA is a specialized medical logistics provider for public health facilities and programs. It
was formed in 11th February 2000 after recommendations of health stakeholders. KEMSA works
to support the National Health Strategic Plan and the Kenya Health Package for Health in
providing public health facilities with the “right quantity and quality of drugs and medical
supplies” at the best market value (Arrowsmith & Quinot, 2013).

The Kenya medical supplies authority operates under the service sector. The Kenya medical
supplies authority provides medical equipment’s and medicines to the health sector. This means
that the Kenya medical supplies authority is an operation in the service sector. The Kenya
medical supplies do the procurement of the medical supplies from manufactures from all over the
country as well as outsourcing internationally for those commodities that are not manufactured
locally. This makes it possible for all the health sections all over the country to access medical
supplies with ease from the authority (International Monetary Fund, 2015).

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1.3 CORE ACTIVITIES

KEMSA core activities are distribution, warehousing and procurement of medical commodities
and medicines to the private and public organizations in Kenya.

1.3.1 procurement

KEMSA carries out procurement on behalf of the Government of medical commodities. This
procurement is carried out under the public procurement rules as established in the new Public
Procurement Act, 2015 which are followed to the letter. KEMSA’s activities in procurement are
based on requirements as identified and outlined by the Government. In addition, KEMSA
carries out procurement of medical commodities on behalf of donor funded programmes such as
the GF, the UN,WB,USAID,WHO and so on and relies on respective donor rules for these
procurements. The procurement cycle entails identifying appropriate suppliers, soliciting and
evaluating bids and appointing supplier.

1.3.2 Distribution

Distribution is the process by which medical commodities reach the facilities. Distribution at
KEMSA is mainly outsourced to third party transporters and the organisation maintains a
minimal in-house fleet. In the distribution the management of the customers complains and the
management of fleet and the control of the same is also carried out. The transportation of the
dangerous drugs under DDA is carried out by the KEMSA transporters only.

1.3.3 Warehousing

Once medical commodities are received, KEMSA undertakes to warehouse these; the main
warehouses are in Nairobi and there are 8 depots (Mombasa, Kisumu, Eldoret, Nakuru,
Kakamega, Meru, Nyeri and Garissa). As at 2010 the capacity of the Commercial Street and
Embakasi warehouses is 248,000ft2 in total while that of the depots is combined at 44,810ft 2.
Warehousing is undertaken of goods procured for the Government as well as on behalf of
various donors and programmes.

1.4 MISSION, VISION AND GOALS

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1.4.1 Vision

“To be a leader in innovative health supply chain solutions that support better health service
delivery”

1.4.2 Mission

“KEMSA will provide reliable, affordable and quality health products and supply chain solutions
to improve health care in Kenya and beyond”.

1.4.3 Departmental Goal

Timely procurementof medical commodities and other supplies to meet the Authority’s
requirements.

1.5 ORGANIZATION STRUCTURE

Table 1.1

Cabinet Secretary for Health

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Board of Directors

Chief Executive PR &Communication

Chief Security Officer
 Legal Services
Commercial Operations Finance & Admin Procurement Dir. &
Dir. Dir. Dir. Dir. Corporate
Secretary
Distribution Finance
Manager Internal Audit
Manager Procurement Manager
Customer Manager
Technical
Service ICT
Sales &Mkt. Services PHARMS
Manager Manager
Manager Manager
HR &
Quality Admin
Assurance Manager Procurement
Manager Manager,
Planning & Contract
Warehouse Projects Management
Manager Manager Procurement
Manager
PROGRAMS

1.6 SUPPORT DEPARTMENTS

1. Financial Management: The finance function handles all aspects of financial

management including receipt of funds from Government and various donors, release of

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 funds for expenditure, accounting for funds received and utilised, financial reporting and
cash flow management.
2. Human Resource Management: The human resource (HR) function manages the
people-related aspects of KEMSA. These include recruitment and selection of
appropriate staff, staff welfare, performance management, records management, benefits
administration, training and development and all HR related functions of the
organisation.

3. Public Relations and Communications: PR and Communications is responsible for

managing the KEMSA’s brand name and image. In addition, the department is also
responsible for updating the institution’s website as well as managing and responding to
any external queries or clarifications relating to KEMSA.

4. Information, Technology and Communication (ICT): The performance of KEMSA is

highly reliant on utilisation of appropriate technologies. The IT Department is responsible
for managing technology within the organisation including maintaining the ERP, liaising
with vendors, ensuring connectivity between sites, data management and all technology
related functions.

5. Legal Services: KEMSA receives legal advice from a combination of the in-house legal
department and external advocates who represent the organisation as necessary. Other
legal functions include drawing up of contracts, arranging for external counsel, providing
litigation advice among others. The overall objective is to ensure that KEMSA is legally
safeguarded at all times.

6. Internal Audit: To militate against risks, KEMSA has an internal audit function
responsible for providing oversight over all functions, to ensure procedures are being
complied with, to ensure effective internal controls are in place and other activities aimed
at minimising KEMSA’s exposure to operational risks.

CHAPTER 2

2.1 INTRODUCTION

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This chapter explains the general activities I undertook during my period of attachment at
KEMSA and the skills and competencies gained, skills applied and the utilization of the contacts.
These includes in all the departments I was attached in that is warehousing, distribution and
procurement department.

2.2 PROCUREMENT

Here I was taken through the procurement process that is very well followed in KEMSA; this
procurement process diagram is presented in every room that deals with procurement for
everyone to see. Also I was taught to strictly follow the public procurement and disposal act as it
is the main guideline of all the activities taken in KEMSA in fact each employee involved in
procurement practices ha a copy of the act and refers to it all the time. i was also taken through
the SOPs of KEMSA before I undertook any task and a copy of the same was handed over to me.

In procurement department I undertook five major general activities:

1) Internal procurement. These is the procurement of all the internally related goods and services
these are for the use of the organization example: procurement of office chairs or desks for use in
the organization of procurement of supervision of forklift services.

2) Global fund department. This is where the procurement of medical commodities and the
support factors of the same are made. It also includes the WB, USAID and so on.

3) Records department. There is no successful procurement that can operate without records
keeping. In records department in procurement is a very essential and confidential place and not
authorized to anyone because some information’s are confidential for the organization.

4) Contract department. All the contractual work is done at the contract. All the framework
contracts and also the tracing of inventory in order to determine the FSN product and decide the
kind of contract to enter into.

5) There is another portion of procurement team that deals with the communication to the
suppliers and advertisements of the tender and as the same in the issuances and recording of the
tenders to the suppliers

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 2.3WAREHOUSE

In the warehouse my supervisor played a good role in taking me through the SOPs before i
undertook any task and ensured i understood everything very well. The main warehouse in
KEMSA is located at Embakasi though there are other warehouse located at different pert of
Kenya example Eldoret, Mombasa and others. The warehouse is maintained at a certain degrees
in order to secure the drugs from damages, there are also cold rooms to store those drugs
recommended for cold temperature storage, and it’s a highly standard warehouse.

At the warehouse I did the following four general activities

1) Receipt. These is where all the goods are received either from deport or from the suppliers
they are recorded manually and therefore recorded to the system that’s called WMS. All the
receipt of goods functions happens at this point

2) shop keeping. Here different individual are normally allocated different items to handle in all
processes of dealing with the customers to a certain product an example of supermarket is
applied to what happens here. These individuals are normally called shopkeepers but in other
organizations they may be called other names like inventory clerks.

3) Documentation. These is where all the activities concerning documentation involved with the
warehousing functions are curried out example emails are received in order to generate an order.

4) Warehouse inventory management. A team is normally set apart to manage the activities
going on in a warehoused these are the warehoused managers they do such work as tacking the
stocks updating the WMS on the issues concerning stock.

2.4 DISTRIBUTION

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KEMSA outsources most of its transporters because of some of the important reasons like
maintenance of the vehicles it might be more expensive. These transporters are example the
timeless or the e-logistics and Bulto.

Distribution department is one of the most important part of the organization. In the distribution i
undertook four general activities. That is the administration part of distribution, the planning part
in where routing is done, records and the dispatch which is the key part of distribution.

2.5 SPECIFIC ACTIVITIES UNDERTAKE

2.5.1 Procurement

 Calling of suppliers to come and collect all official correspondence

 Issuing LPOs and RFQs to suppliers once they have been awarded tenders. LPOs are
printed in four copies: the white copy goes with the supplier, the yellow one goes to the
warehouse, the pink one to the finance and procurement retains the blue one.
 Updating the lists of prequalified suppliers using the ERP system these is used by the
organization.
 Generating and printing of the LPOs for the organization purpose using the ERP.
 Generating import permits and exemptions for the donor funded commodities
 Visited the MOH and the NT for the exemption of tax for the donation commodities
either by UN.
 Generated some opinions which were later checked if they were correct by the CEO. The
opinion requests for the reward of the lowest responsive bidder as per the evaluation done
and the procurement process followed and afterwards a notification of awards and regrets
should be made then the contract with the awarded supplier is generated next after
acceptance letter from supplier

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  Attended evaluations which involved randomly giving numbers to the bidders and hence
commencing to primary specifications, tertiary specifications which included the product
specification and hence the last stage of the specification being the financial
specifications. The secretary who is supposed to be from the procurement department
writes the report on the proceedings of the meeting. The other one is the chair person
from the user department and the rest of the personnel are the members.
 Attended tender opening as one of the appointed members and participated fully. It
involved reading the bids quoted by various bidders in the presence of all the bidders. Bid
numbers are issued randomly to each bidder and one of the key things checked is the bid
bond and if the tender document is well filled, also documents are confirmed of they are
paginated.
 Made evaluation reports for the low value tenders of the RFQs that would later be used to
generate the professional opinion as stated in the PPADA.
 Making contract attachment that later I used to take them to legal department to be signed
in order to show compliance with the PPADA act.
 Assisting in filling of documents and records at the records department and also
retrieving while needed by either of the departments involved, an authorized personnel
example finance procurement and legal department. All procurement files are blue in
color for ease identification.
 Conducted the receiving and placing of phone calls in the organization as per the
customers’ requests. Valuing customers are one major activity that an organization
should try to do well.
 Directed suppliers into where they are supposed to be and to whom to direct their,
complains to and in the case of any query explain to them. Example direct them to the
tender opening room and to whom to take their samples to.
 I received some samples and as the same recorded them. I also retrieved them while
needed for evaluation purpose.

2.5.2 Warehouse

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  I issued suppliers with gate pass once he is delivering goods in order to de allowed to
pass goods through the gate.
 Confirmed suppliers documents while they deliver their commodities these documents
are: delivery note, certificate of analysis and the acceptance letter.
 Verified goods delivered by the supplier if the arrangement to the pallet is okay and if the
shelf life and the expiry date is not less than 75% and also if the product has the primary,
secondary and tertiary covers.
 Updated the goods received manually to the WMS. These task was supposed to be done
daily.
 Recording the inventory as the shopkeeper. Recorded in the BTR, bin card, s11 and all
the documents involved with inventory. Also picking, verification, consolidating and
labeling.
 Electronic re-warehousing and manual re-warehousing.
 Generating daily summery sheet (DSS), picking list and order booking for the customers
by the use of WMS. After documenting these generated orders the receipts are bar coded
using the hand headed scanner. These is in order to represent the respective racks for
specific products.

2.5.3 Distribution

 Updating the deliveries of goods to the customers in the WMS using the blue copies.
 Vehicle tracking and dealing with customers complains after the deliveries has been
made
 Routing and planning for the route that the vehicle is going to follow and hence planning
for them as either hospital commodities.
 Costing of the parcels and the postages of KEMSA.

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  Recording of warehouse files these are the blue copies, the yellow copies and also
retrieving the documents for the purpose of auditing. Also scanning of the retrieved
documents for the purpose of referencing.
 Dispatching of goods in which the following process where involved: staging,
verification of goods and the vehicle together with the driver capability and updating the
procurement plan. Some documents where involved these are: loading plan distribution
list, delivery note and vehicle verification list.

2.6 SKILLS AND COMPETENCIES GAINED

While attached at KEMSA some of the skills I acquired include:

 Communication skills.

In any organisation it is important to be able to express yourself so as to pass the correct

information across.

 Technical skills

In the whole period of my attachment I got to use various systems that ensure the flow of work
including ERP and WMS.

 Professional skills

I enhanced my professional skills by reading the new Public Procurement Act 2015 which
KEMSA uses in its operations. I also equipped myself with the KEMSA Act 2013 and also the
KEMSA standard operating procedures.

 Interpersonal skills

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  The correlation between me and the people around me is important so as to ensure good
working environment in the organization. People are different and thus working at
KEMSA has enabled me to know how to handle people with different personalities.

Furthermore I was able to know how to work under pressure and under minimum supervision.

 Good record keeping

It is important that all transactions are well stored and I was able to learn how to keep records
both electronically and manually. All procurement information needs to be accounted for and I
therefore think that this is an added skill that will assist me in my future endeavours.

2.7 SKILLS APPLIED FOR BENEFIT OF ORGANIZATION

The various skills I acquired helped me in handling my day to day activities for the benefit of the
organisation in the following ways;

2.7.1 Professional skills

Equipping myself with the new Public procurement and Asset Disposal Act 2015 and the
KEMSA Act gave me an opportunity to attend evaluations of different tenders.

Evaluation of tenders
The evaluation committee is appointed by accounting officer who for KEMSA case CEO,
pursuant to section 46 of the PPAD act 2015. This committee shall evaluate and compare the
responsive tenders. I assisted in the evaluation committee as they did evaluation and I was able
to familiarize with this evaluation stages

Preliminary Examination

We checked in the original copy of the bidder’s document if they have dully filled tender form,
bid bond/tender security form, declaration form for the case of YAGPO, bid security amount that
should be provided by recognized insurance companies or banks and whether requisite

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documentation has been submitted. Substantially, responsive tenders qualified for next stage of
evaluation.

Product Evaluation

For samples submitted we evaluated against specifications to confirm compliance or non-

compliance by a technical evaluation team appointed by the Chief Executive Officer. More
important was the manufacturers’ authorization (MA), quality certificate (QC) and right product
as per the specification of tender document provided.

Financial Evaluation

Bids that are determined to be responsive at the preceding stage were then subjected to financial
evaluation and preference analysis under CR 12 form and recommendations made for award to
lowest evaluated responsive bidders.

Adjudication

Adjudication of tenders were and are to be done by accounting officer (CEO) under professional
advice of the procurement director this as a result of elimination of the tender committee and
procurement committee as per the new act.

Notification of Tenders

Notification letters (regret and award) are sent to all bidders participating in tenders whether
successful or not. 14 days window period is allowed for appeals before contracts are signed by
the successful bidders. In case of an appeal, the procurement is suspended until the appeal is
heard and determined.

Award Actions

After acceptance of the offers, contracts shall be signed with successful bidders after the expiry
of the 14 day window. Purchase orders shall subsequently be issued to successful bidders after
submission of a Performance Guarantee.

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2.7.2 Technical skills

Good computer knowledge helped me use the ERP and WMS in, Generation of LPOs & LSOs

Generation of LPOs was daily work which I was assigned by my supervisors. The purchase
orders where generated on the KEMSA ERP after which they are forwarded to various managers
for approval. The manager then forwards the same to director who will forward to the finance
manager for final approval allowing the LPO to be able to be printed out for signing.

The purchase orders captured the data contained in the framework contract or the requisition
form/receipt voucher, amount as per the mode of currency, date of delivery and the name of
Supplying Company. The ERP also required one to indicate the source of funds and location of
the warehouse to deliver in order for it to allow forwarding for manager approval. The WMS
helped me in the generation of delivery notes.

2.7.3 Communication skills

Good etiquette gained while communicating helped me when calling suppliers to come and
collect official correspondences. These include the regret letters to unsuccessful bidders and
awards letters to successful bidders. It also involves calling them to pick their quotations, and
local purchase orders to facilitate payment.

2.7.4 Good record keeping

The skills gained in record keeping helped me to work in the record office where I assisted in
facilitation of documents to officers upon request, filling of procurement contracts documents,
and systematic arrangement of files for easier retrieval.

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 2.8 UTILIZATION OF CONTACTS MADE DURING THIS ATTACHMENT

I believe in working hard to get where you want. Through this attachment I believe I did my best
to grasp all I could about procurement, warehousing and logistics so that understanding what I
am taught in school becomes easier. It will also help me know what is expected of me when I get
to the job market.

CHAPTER THREE

Analysis/observations/critiques

3.1 SWOT ANALYSIS

Strengths Weakness
- Strong management systems - Infrastructural constraints in respect to
- Strong financial base/strong capitalization warehouse space
- Institutional autonomy through KEMSA 2013 act. - Sub-optimal use of ICT
- Competent board, management and staff - Limitation of product range
- Presence of warehouses outside Nairobi - Limited commercial mindset
- Capacity and reputation of bulk commodities to all - Lack of elaborate stock policy
levels of health service. - Weakness in commodity forecasting
- Long experience and expertise of supply health - Government affiliation
commodities

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Opportunities
- Potential for higher health commodity budgets
- Regional business opportunities in counties
- Supply to non-traditional public sector customers
- Supply to private sector customers and especially
the FBO and NGO sectors
- Strengthening existing strategic partnership and
developing new ones
- Funding such as donations, legislature and other
sources
- mission for essential drugs and suppliers such
Threats
- Devolution of health services- counties have
greater discretion to choose from a wide range
- Commercialization exposes KEMSA to new
threats such as fraud and credit risks
- Reduction of support from partners to procure
and distribute commodities
- Inflation affects the supply of commodities
from international suppliers
- Presence of competitors in the market such as
as MEDS who tend to lower their prices more
than KEMSA.

3.2 OBSERVATIONS

Throughout this attachment period I have observed that procurement is a very interesting and
challenging career and that mastery of the Public Procurement and Asset Disposal Act
(PPADA2015) and Public Procurement and Disposal Regulations (PPDR2016) is very
important. All the manuals clearly state what and how everything should be carried out so as to
avoid corruption and ensure that all bidders have equal chances and compete on fair grounds.
(Rotberg, R. I. (2014).

Most of the staff did cooperate with me and took me through their work step by step and also
took time to answer my questions. They gave me an easy time at work i was able to be treated as
member of the staff and hence I got to understand practical procurement. This was through
attending a departmental meeting every week where I was able to give updates on what I had
done throughout the week. They also gave me a chance to seek any clarification.

KEMSA has automated all its operations and this has made work easier and less time wastage
through the use of the ERP and the WMS. This has been of great use to the organisation in that
the whole procurement process can be carried out from a central location in that after evaluation

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and award, the LPO is generated and the same information is forwarded to the warehouse online
for receipt process and delivery notes forwarded to the finance document for payment.

KEMSA gives a fair chance to every supplier. This can be seen by the effort they’ve made to
ensure that 30% of the marginalised and disadvantaged group get the award as per the new Act
by always giving them quotations and all the low value procurement and internal procurement.

KEMSA has put up a strong stock policy this has been by having a department that deals with
contract management. This ensures they follow up with the supplier about the delivery schedules
hence minimising chances delays and lack of deliveries.

3.3 CRITIQUE

3.3.1 Long delivery schedules

KEMSA is well known logistics provider for all the health facilities in the country however; at
times suppliers fail to deliver within the expected time hence causing delay in deliveries though
they have attempted to solve this by signing of the framework contracts. This can be better if
there is a time limit within when contracts should be signed and for those unscrupulous suppliers
who fail to deliver within the expected time serious legal actions should imposed on them

3.3.2 Supplier relations

KEMSA has both local and international suppliers for the medical drugs however some suppliers
don’t know how to prepare the tender documents especially new suppliers who download them
online, and though they’ve tried to solve this by always preparing for them documents at a small
fee, this can be improved by conducting regular supplier relationship management programmes.

3.3.3 Enactment of the new Act

The new Public Procurement and Asset Disposal Act PPADA, 2015 that has been enacted is yet
to be fully understood by the staff especially during evaluations and handling of activities hence
the possibility of making mistakes is very high. This can be overcome by conducting regular
training seminars to the staffs.

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3.3.4 Expiry of goods while on stock

The organisation has tried to use the FIFO method during distribution of medical drugs
however, some drugs still expire while in the warehouse and at times the ministry orders the
buying of drugs which it has anticipated an outbreak, an example they procured drugs for Ebola
which never happened hence causing a huge loss to the organisation. This loss can be prevented
by the use of JIT for the emergency drugs and stocking just enough depending on counties
demands through projected demand.

3.3.5 Inadequate space

KEMSA supplies drugs to all the 47counties and though it has tried to solve the space crisis by
leasing eight depots in different parts of the country at times there is still insufficient space in
the warehouse this can be overcome by leasing more storage space and forecasting demand so
that they can order just enough.

3.3.6 Outsourced Distribution

KEMSA has improved its distribution by outsourcing the transport such as the Jihan freighters
and the BM logistics however at times this transporters keep the medical commodities at their
premises hence causing delays, this can be improved by acquiring their in-house fleet which
would be more convenient considering that they are always distributing drugs all over the
country.

3.3.7 Court Appeals

KEMSA has tried to be fair in the award of tenders such as ensuring 30% percent of the awards
go to the marginalised group as per the new Act and by ensuring local investors have a higher
preference, however some suppliers feel the award decision was not fair to them hence ending up

27
in court and even after the court ruling they still go for an appeal .This causes a lot of time
wastage in preparing documents needed in court.

CHAPTER FOUR
Summary and Conclusions

4.1 SUMMARY
Chapter one covers introduction to the organizations. This is from when KEMSA evolved since
in the early 1915 up to date. It also analyses on KEMSA’s field of business activity, self-concept,
vision, mission, strategic objectives, key performance indicators and the organizational structure
which starts from the cabinet secretary.

Chapter two comprises of sections and departments worked whereby I worked in the GOK
procurement. General activities undertaken by the organizations include the corporate services
such as, human resource which deals with recruitment, public relations and communications
which is responsible for KEMSA’s brand image, information technology and communication,
legal services which represent KEMSA in the law, and the Internal audit which ensures all
regulations are followed. It also covers the daily specific activities undertaken during attachment
such as selling of open and restricted tenders, printing of LPOs, calling suppliers to come pick

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their clarifications, availing documents to officers upon request, preparing RFQs, making of
contract attachments and issuing of bind bonds to suppliers.

It also covers the skills and competencies gained such as the communication skills, technical
skills, professional skills, interpersonal skills and good record keeping. The skills gained I
applied in tender evaluations which I learnt covers three stages ,that is the preliminary stage,
technical stage and the financial stage whereby the lowest bidder wins the tender. The skills
learnt I also applied in generation of LPOs, calling of suppliers and good record keeping lastly it
also covers the utilization of contacts made during the attachment period.

Chapter three covers the analysis which includes the strengths, weaknesses, opportunities and
threats that KEMSA faces and it also covers observations I have made during the attachment
period and the critiques.

The last chapter covers a brief explanation of the main report this is the summary and also the
conclusions.

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 4.2 CONCLUSION
This attachment has been very helpful in understanding my profession more and being able to
get a taste of how the job market is and how to deal with challenges that keep coming up. I
appreciate all the skills that KEMSA has been able to provide me with.

I now have practical knowledge on the different types of procurement i.e. direct procurement,
tendering, request for proposals, request for quotations and low value procurement. (The report:
Kenya 2014. (2014).

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 REFERENCES

1. Arrowsmith, S., & Quinot, G. (2013).Public procurement regulation in Africa.

Cambridge, UK: Cambridge University Press.
2. Bate, R. (2015). Phake: The deadly world of falsified and substandard medicines.
Washington, D.C: AEI Press.
3. Bellamy, A. J. (2009). Responsibility to protect: The global effort to end mass atrocities.
Cambridge: Polity.
4. In Mackintosh.In Banda, In Tibandebage, & In Wamae, (2016).Making medicines in
Africa: The political economy of industrializing for local health.
5. International Monetary Fund. (2015). Kenya: Poverty Reduction Strategy Annual
Progress Report 2003/2004. Washington, D.C: International Monetary Fund.
6. Koenig, K. L., & Schultz, C. H. (2010).Koenig and Schultz's disaster medicine:
Comprehensive principles and practices. Cambridge: Cambridge University Press.
7. Oleary, J. W., Lyons, M. C., & Rose, V. E. (2012).My road to Kenya: A story of faith,
hope and democracy in action. Bloomington, IN: West Bow Press.
8. Nestle, M. (2015). Food politics: How the food industry influences nutrition and health.
Berkeley: University of California Press.
9. The report: Kenya 2014. (2014). Ryle, J. (2011). The Sudan handbook. Suffolk: James
Currey.
10. KEMSA Website - www.kemsa.co.ke

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